Chicago Buy Raises Arcapita’s Senior Living Portfolio to $350M
The Chicago portfolio comprises two premium continuing care retirement communities with approximately 1,100 units operated by Senior Care Development and Life Care Services.
CHICAGO—Arcapita, a Bahrain-based alternative investments firm, has acquired two senior living properties here that raises its US portfolio in this sector to $350 million.
The Chicago portfolio comprises two premium continuing care retirement communities with approximately 1,100 units operated by Senior Care Development and Life Care Services; the second largest senior housing manager in the US with 130 communities across 32 states.
Arcapita CEO Atif A. Abdulmalik says, “We have a strong track record in the sector, having previously managed and successfully exited five senior living portfolios, comprising over 70 properties in the US and UK, which delivered double-digit IRRs to our investors.”
He adds that the senior living sector is poised to experience “outsized growth and is expected to continue to outperform the broader real estate market in the US. We intend to capitalize on the sector’s performance to deliver a strong yield and attractive returns for our investors.”
Arcapita, which has been operating in the US since 1998, has moved its US operations to a new office in Atlanta and says it is currently bolstering its US team with highly experienced real estate and private equity investment professionals.
The Chicago portfolio purchase was Arcapita’s third senior living acquisition over the last 30 months, taking it to a total of eight transactions in the sector worth $1.8 billion. Arcapita has previously acquired six senior living communities with more than 500 units in Washington DC, Atlanta, Denver and Colorado Springs.